MTNL - Accumulation?

MTNL, as a company that I would always try to avoid as I am extremely uncomfortable with their style of functioning. The stock charts however is showing something that is pleasing to the eye. The stock has been falling in this bullish market. It looks to be an ideal hedge with limited losses and a good potential upside.

Though the stock has not given a clear "Buy", this looks to be an ideal place to start looking at the movement of the stock seriously. Any value buyer can start slowly accumulating the stock at these levels.

• RSI is at its lowest levels, indicating a oversold stock in the past two weeks
• MACD column bars has started reducing
• However, there looks like no stopping on the decline of volumes. Selling is still active at these levels.

At the first strong resistance levels at 168, the stock has a potential upside of just more than 25%. The stock could see some consolidation happening at about Rs. 150 and even at this level the stock has a potential upside of around 18%.

For a patient investor, there is some money to be made in this stock. For a speculator, wait for sometime till there is some trend reversal!